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Wednesday, May 16, 2018

Rexnord Seeing Its Process Markets Kicking In

Rexnord (RXN)
was arguably a bit of a late arriver to the industrial recovery, but
the company ended the year with good revenue growth numbers. Given the
company's leverage to process industries and institutional construction,
this next year should be relatively stronger for Rexnord than its peer
group, and management continues to prune the portfolio and pursue
additional cost reduction opportunities.

I thought
the shares offered some reasonable relative value back in February, and
the shares have done okay since then - up more than 5% and outperforming
both the S&P 500 and many industrial/multi-industrial peers (though
relatively in line with close peers like Timken (TKR) and Regal Beloit (RBC)).
The valuation still looks okay on a relative basis, though I think
there are some other industrial names out there with more upside.

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I started this blog as a way of archiving my writing for sites like Investopedia, as well as posting some thoughts on the markets, stocks, or whatever else strikes my fancy.
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